The company announced on November 14, 2016, that the first phase of the company's employee stock ownership plan purchased a total of 4,084,912 shares of the Company through secondary market bidding transactions. The transaction amount was RMB 78,483,972.20, and the average transaction price was RMB 19.21. The number of shares purchased accounted for about 1.68% of the company's total share capital. As of the announcement date, the company has completed the first phase of the employee stock ownership plan stock purchase. Announcement comment: The participation of the executive team and core employees, and the guarantee of the majority shareholders demonstrate confidence in the company's development. The first phase of the company's employee stock ownership plan is locked in for 12 months from November 14. The plan establishes priority shares and subordinate shares according to a 1:1 ratio, of which employees raise no more than 40 million yuan of their own capital in the inferior share. Mr. Ma Zhenxin, the controlling shareholder of the company, guarantees the principal amount of the investment portion of employees participating in the employee's shareholding plan. At the same time, the company's shareholder, Mr. Ma Zhenxin, plans to provide joint liability guarantees for the realization of the priority shares in the pooled plan. Holders who have invested in the employee stock ownership plan include company directors, supervisors, senior management, and other core employees. There are no more than 120 people in total, including 7 company directors, supervisors, and senior managers, and no more than 113 other core employees. The employee stock ownership plan includes the participation of senior management teams, wide coverage of core employees, and guarantees from controlling shareholders and management, demonstrating the firm confidence of the controlling shareholders and management in the long-term development of the company. It will increase employee enthusiasm, enhance employee cohesion, and further consolidate the foundation of manpower security for the company's “Jinming Industry 4.0” and “Big Health” strategic goals. Join hands with giants to accelerate the pace of development of “Jinming Industry 4.0.” The company issued an announcement on November 10 to sign a “strategic partnership agreement” with Siemens. Siemens is a leading supplier of advanced industrial automation products and software in the world today. These continuously innovating products provide a good platform for fully integrated automation solutions and digital manufacturing. Joining hands with giant Siemens, the company will further accelerate the pace of development of “Jinming Industry 4.0” and achieve the strategic goal of becoming a leading enterprise in the global film blow molding industry. At the same time, we will further improve the customer structure, expand the company's influence in the global market, increase market share, and make more contributions to the improvement of the company's performance. Orders have increased significantly, and the quality of profit has improved. The company's third quarterly report shows that due to the increase in the company's orders and the purchase volume increased compared to last year, the company's prepaid accounts at the end of the third quarter increased by 86.39% compared to the beginning of the year; prepaid accounts increased by 53.75% compared to the beginning of the period, mainly due to an increase in advance payments for equipment received from customers. Meanwhile, net cash flow from operating activities in the first three quarters was -74,800 yuan, a year-on-year decrease of 87.31%, and the quality of profit improved. Investment suggestions: We expect the company's net profit in 2016-2017 to be 55.44 million yuan and 63.39 million yuan, EPS is 0.23 yuan, 0.26 yuan, corresponding PE is 87.17 times and 77.12 times. Currently, the median PE (TTM, excluding negative values) in other special machinery industries is 135.89 times. The company's valuation still has some room to rise. Considering that the company's series of industrial layout centered on the “Jinming Industry 4.0” and “Big Health” strategies is progressing steadily, we maintain its “buy” investment rating. Risk warning: Downstream demand has declined, and the implementation of the company's “Jinming Industry 4.0” and “Big Health” strategies has fallen short of expectations.